Little Chef in Pre Pack Administration

5 March 2012

We reported early in February that Little Chef were to close a third of its restaurants in a major cost cutting exercise.  What was not so clear at the time and went under-reported was the fact that it was done via a pre pack administration with Begbies Traynor acting as administrator.  At the time many other businesses were falling down especially on the High Street and Tesco had issued its first profit warning.  It looks like the media were not very interested in Little Chef at that time.  The Daily Mail was the only main stream publication that reported the pre pack administration. 

The fact that the chain was cutting a third of its outlets and had not given a timescale hinted at the move.  A pre pack administration and even a CVA can determine lease obligations leading to closure of premises.